It's looking grim again. Is gold the would-be saviour?

[AdvocatusD]

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Have a read of this thread and the mention of gold more than once. Interesting to see the psychology we discussed playing out in our own micro slice of life...

[AdvocatusD]

Very interesting indeed, but only time will tell. I think gold will settle at this 1550 - 1600 level for the forseeable future. My Veyron purchasing will need to wait for another day!

[AdvocatusD]

I have to admit that that article doesn't make much sense to me. Is it saying that gold's going up down or they don't know?

I'm still in the black, but this is heart-stopping stuff!

I still think the fundamentals remain good for gold. The equities market crumbled sometime ago and now look where it is. I guess that if you don't need the money at the moment, then there's no reason to panic quite yet.

[AdvocatusD]

DonkeyApple said:

If China is buying fewer goods from Germany then they will almost certainly be buying less raw material from Aus. Aus is an economy waiting to crash.

If economies look like they are failing or fail, does that appear to support the thought of a rally for gold.

Like when it jumped when Cyprus happened...?

[AdvocatusD]

davepoth said:

It's a bursting bubble right now, but it's bound to over-correct before it finds some kind of level.

That resonates with me.

[AdvocatusD]

http://www.cnbc.com/id/100672709

"Warning! Stocks to Crash, Gold to Top $10,000: Albert Edwards"

"Gold prices will top $10,000 per ounce, the stock market will tank and Treasurys will yield less than 1 percent, Societe Generale's Albert Edwards forecast in a trademark bearish report on Thursday."

Anyone got a flying pig?

I don't think I have actually seen a single bank put forward a "forecast" that has actually been accurate They have zero credibility with me.

[AdvocatusD]

"ECB cuts eurozone interest rate to new record low of 0.5%LIVE: ECB President Mario Draghi on interest rates
Eurozone unemployment at record high
Spain's economy continues to shrink
The European Central Bank (ECB) has cut its benchmark interest rate to a new record low amid ongoing worries about the eurozone's economic health."

http://www.bbc.co.uk/news/business-22369765

Can't help feel that despite the current beating that gold is taking, the "fundamentals" for gold are still positive.

[AdvocatusD]

DA, are you saying you expect gold to rise again?

I've got to say I think we'll see 1800+ again based on the general shakiness of things. I think that will be gold's last hurray and then (in the words of the dumpy lady on TV) "I'm out".

[AdvocatusD]

Pretty sure it will... There'll be inevitable see-saw as it rebounds, but the foreseeable future is down I think.

[AdvocatusD]

Digga makes a very valid point.

I think long term, the cracks simply cannot be covered in the way they are now.

Short term, gold is pretty fked.

[AdvocatusD]

Detroit has just gone proper bust. I find news like this sits quite uncomfortably with everyone tooting their horns about "recovery".

I think everything is still broken, but because it's the new "normal", people/gold aren't/isn't reacting anymore.